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Thursday, 12 Jun 2014

Written Answers Nos. 41-61

Departmental Staff Data

Questions (41)

Michael McGrath

Question:

41. Deputy Michael McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade if he will provide a detailed list in tabular form of all staff vacancies, within his Department and in each agency under his Department's remit, at principal officer grade or above, including the title of the vacant post and the functional area to which it belongs; the length of time the post has been vacant; the salary attached to the post in question; in respect of agencies where Civil Service grades do not apply, if he will include vacancies where the post attracts a salary equivalent to or greater than that of a principal officer grade; and if he will make a statement on the matter. [25123/14]

View answer

Written answers

The requested information by the Deputy is set out in the following table:

Current vacancies at PO level and above in the Department of Foreign Affairs & Trade June 2014

Grade

Division

Length of time the post is vacant

Salary scale

Principal Officer/Counsellor

ICT Unit

September 2007

€75,647-€92,550

The Head of ICT Unit post has been temporarily filled by an Assistant Principal “acting-up” to the PO / Counsellor grade. Sanction has been sought from D/PER to hold a competition to fill this position. There are no State agencies under the aegis of my Department.

Northern Ireland Issues

Questions (42, 43, 44)

Brendan Smith

Question:

42. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the issues discussed at his recent meeting with the Northern Ireland Secretary of State; and if he will make a statement on the matter. [25144/14]

View answer

Brendan Smith

Question:

43. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the issues discussed at his recent meetings with political parties in Northern Ireland; and if he will make a statement on the matter. [25145/14]

View answer

Brendan Smith

Question:

44. Deputy Brendan Smith asked the Tánaiste and Minister for Foreign Affairs and Trade the details of his recent visit to Belfast; the organisations or deputations he met; and if he will make a statement on the matter. [25146/14]

View answer

Written answers

I propose to take Questions Nos. 42 to 44, inclusive, together.

During my visit to Belfast on 9 June 2014, I met with a wide range of political, business and community leaders. I also had the opportunity to congratulate the new Lord Mayor of Belfast, Nichola Mallon, on her appointment.

In my meetings with each of the Party Leaders, I stressed the importance of delivering an agreement on the outstanding issues. I underlined that the people of Northern Ireland expect politics to deliver. I remain committed to doing everything possible in the time ahead to ensure that real progress is achieved.

I had the opportunity to meet with key representatives of Northern Ireland’s business community. We discussed the wider benefits that a successful conclusion to the Party Leaders’ Talks will bring to the economy of Northern Ireland. It was clear that business leaders were concerned at the broader economic and social consequences of the slowness in political progress in recent months.

My discussion with Secretary of State for Northern Ireland Theresa Villiers included ongoing developments in Northern Ireland Political Party Leaders’ talks and our shared concern that the forthcoming marching season pass peacefully. On the Party Leaders’ Talks, we both expressed the hope that the renewed sense of momentum in the talks will translate into a comprehensive and fair solution to outstanding issues on flags, parades and dealing with the past.

I also addressed a reception attended by key community, business and political leaders, where I launched the Department’s Reconciliation Fund Strategy for the period 2014 to 2017. The new strategy for the Reconciliation Fund has at its heart a commitment to the full implementation of the Agreements. Support for projects will be grouped around two thematic pillars: repairing and building. Under the first pillar, the Fund will support projects tackling issues that lead to division, conflict and barriers to a deeply reconciled and peaceful society. The second pillar will see support for projects that contribute to building a strong civil society that encompasses all communities, through the continued implementation of the Agreements and the promotion of a rights-based society, political stability and respect for all. The strategy places a strong emphasis on innovative approaches, maximising effectiveness and value-for-money. I look forward to the strategy supporting the work of the Government in delivering reconciliation on this island.

Election Monitoring Missions

Questions (45)

Finian McGrath

Question:

45. Deputy Finian McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade the individual cost of each trip taken by persons as part of Ireland's international election monitoring in 2013 and to date in 2014; if all the persons selected for these trips were members of the election roster set up by his Department; and if he will make a statement on the matter. [25153/14]

View answer

Written answers

The Department of Foreign Affairs and Trade maintains a roster of individuals who are available to participate at short notice in election observation missions organised in the main by the OSCE and the EU. The Department aims to respond each year to as many of the requests as possible issued by these organisations. Full details of the election observation missions served by Irish election observers in 2013 and to date in 2014, and the individual costs associated with each observer, whether as Long or Short Term Observers, are set out in the tables. The European Commission covers all costs associated with EU election observation missions. For OSCE missions, the Department covers all costs incurred by the individual Irish election observers. This includes a daily allowance, based on OSCE guidance, to cover the cost of food, accommodation and local transport incurred in country. A return air fare is also provided.

In addition, all Irish election observers receive a once-off grant annually of €600 from the Department to cover pre-departure expenses. Insurance cover is also provided by the Department for all observers.

Observers selected for participation in election observation missions are drawn from Ireland’s election observation roster. This roster was established, following a review of the existing roster, in May 2013. On occasion, officials from the Department who work on geographic desks relating to the specific country may partake in election observation missions. This participation is to facilitate the knowledge development and learning of the officials in question. The costs incurred by these officials are paid on the same basis as other election observation roster members, though no pre-departure grant is provided. In 2013, five officials participated in election observation missions. Two officials have taken part in missions to date in 2014.

Election Observation Missions 2013

Country

Organisation

Role

Cost

Jordan

EU

LTO

€600.00

Jordan

EU

STO

€0.00

Armenia

OSCE

STO

€3,447.00

Armenia

OSCE

STO

€3,447.00

Armenia

OSCE

STO

€3,447.00

Armenia

OSCE

STO

€3,447.00

Armenia

OSCE

STO

€3,447.00

Armenia

OSCE

STO

€2,400.00

Armenia

OSCE

STO

€3,447.00

Kenya

Carter Center

STO

€0.00

Paraguay

EU

LTO

€762.39

Paraguay

EU

STO

€0.00

Paraguay

EU

STO

€45.49

Pakistan

EU

LTO

€227.43

Pakistan

EU

LTO

€827.43

Pakistan

EU

STO

€827.43

Pakistan

EU

STO

€725.09

Pakistan

EU

STO

€725.09

Albania

OSCE

STO

€3,726.62

Albania

OSCE

STO

€3,726.62

Albania

OSCE

STO

€3,726.62

Albania

OSCE

STO

€3,726.62

Albania

OSCE

STO

€3,726.62

Albania

OSCE

STO

€3,787.62

Albania

OSCE

STO

€3,787.62

Albania

OSCE

STO

€2,990.03

Mongolia

OSCE

STO

€5,781.33

Mongolia

OSCE

STO

€5,781.33

Mongolia

OSCE

STO

€5,781.33

Mali

EU

LTO

€797.11

Mali

EU

STO

€641.70

Guinea

EU

LTO

€189.53

Guinea

EU

STO

€649.26

Azerbaijan

OSCE

LTO

€2,941.01

Azerbaijan

OSCE

LTO

€5,387.65

Azerbaijan

OSCE

STO

€3,381.62

Azerbaijan

OSCE

STO

€3,381.62

Azerbaijan

OSCE

STO

€3,476.12

Azerbaijan

OSCE

STO

€3,337.62

Azerbaijan

OSCE

STO

€3,432.62

Azerbaijan

OSCE

STO

€3,381.62

Azerbaijan

OSCE

STO

€3,381.62

Azerbaijan

OSCE

STO

€3,381.62

Madagascar

EU

LTO

€295.66

Madagascar

EU

LTO

€295.66

Madagascar

EU

LTO

€895.66

Madagascar

EU

STO

€653.07

Madagascar

EU

STO

€653.07

Georgia

OSCE

LTO

€6,726.27

Georgia

OSCE

STO

€3,638.33

Georgia

OSCE

STO

€3,587.33

Georgia

OSCE

STO

€3,883.33

Georgia

OSCE

STO

€3,723.33

Georgia

OSCE

STO

€3,723.33

Georgia

OSCE

STO

€3,784.33

Georgia

OSCE

STO

€3,784.33

Georgia

OSCE

STO

€3,784.33

Georgia

OSCE

STO

€3,883.33

Georgia

OSCE

STO

€3,978.33

Honduras

EU

LTO

€800.90

Honduras

EU

STO

€664.44

Honduras

EU

STO

€664.44

Kosovo

EU

LTO

€842.59

Kosovo

EU

STO

€641.70

Nepal

EU

LTO

€797.11

Nepal

EU

STO

€664.44

Nepal

EU

STO

€664.44

Mali

EU

LTO

€831.22

Tajikistan

OSCE

STO

€4,038.50

Tajikistan

OSCE

STO

€4,038.50

Tajikistan

OSCE

STO

€4,038.50

Tajikistan

OSCE

STO

€4,038.50

Total Cost for 2013

€182,140.40

Election Observation Missions 2014 to date (June 2014)

Country

Organisation

Role

Cost

Serbia

OSCE

LTO

€5,001.46

Macedonia

OSCE

LTO

€5,949.48

Macedonia

OSCE

STO

€2,542.13

Macedonia

OSCE

STO

€2,542.13

Macedonia

OSCE

STO

€2,515.13

Macedonia

OSCE

STO

€2,542.13

Macedonia

OSCE

STO

€2,542.13

Macedonia

OSCE

STO

€1,804.13

Guinea Bissau

EU

STO

€641.70

Egypt

EU

STO

€649.28

Malawi

EU

LTO

€155.44

Malawi

EU

STO

€656.86

Malawi

EU

STO

€656.86

Ukraine

OSCE

LTO

€15,135.54

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€3,556.91

Ukraine

OSCE

STO

€2,956.91

Ukraine

EU

STO

€37.91

Ukraine

EU

STO

€37.91

Ukraine

EU

STO

€37.91

Total Cost for 2014 to date (June 2014)

€89,087.96

Election Monitoring Missions

Questions (46)

Finian McGrath

Question:

46. Deputy Finian McGrath asked the Tánaiste and Minister for Foreign Affairs and Trade if there is a reserve panel for persons that wish to join his Department's election roster; the way persons were selected for this panel; if details of same were published; if persons that were selected submitted a curriculum vitae as part of the application process; and if he will make a statement on the matter. [25154/14]

View answer

Written answers

International election monitoring missions play an important role in the promotion of democracy and human rights. The Department of Foreign Affairs and Trade maintains and administers a roster of observers for such missions. The aim is to ensure that, when requested, Ireland is represented at an appropriate level in international observation missions for both elections and constitutional referendums. The Department carried out a comprehensive review of the election observation roster in 2013. A public call for applications to the roster was issued, with all applications being required to submit a detailed application form, setting out their relevant qualifications, knowledge and experience in a number of areas. These areas included: experience of election processes and election observation; knowledge of human rights and / or governance issues; experience of living in challenging environments and language and computer skills. Applicants were asked to indicate their proficiency or experience and to provide concrete written examples, where appropriate. An independent appraisal, based only on the information contained in the application form, was subsequently undertaken. Arising from this, the 200 individuals who achieved the highest scores were selected to serve on the new election observation roster. This new roster came into effect on 15 May 2013. Due to the high quality of applications received, a reserve panel of the next 10 highest scoring individuals was also established. The reserve panelists were assessed on the same basis as the 200 other election observation members, with no additional information, being requested as part of this process. Full details of the criteria against which all election observation applicants were assessed were set out in the Information Note, which was published with the election observation application form, on the Department’s website.

Passport Applications

Questions (47)

Bernard Durkan

Question:

47. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade the reason difficulty is been experienced in obtaining an Irish passport in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [25179/14]

View answer

Written answers

When a person renews his/her passport, s/he is required under the Passports Act, 2008 to submit the previous passport which was issued to him/her. In situations where the renewal of a passport is necessitated from loss or theft, the statement of loss section on the application form must be completed by the applicant and duly witnessed by a member of An Garda Siochána. In this case the person in question was issued a passport in 2007 which was valid for five years. However, this was not submitted with her recent renewal application. Moreover, she did not complete the statement of loss to explain the absence of the previous passport from her application. In these circumstances the Department considers that the application is incomplete and as such is not compliant with the Passports Act, 2008. Accordingly, the Department wrote to the applicant on two occasions to inform her of this problem. In the latest letter, dated 29 May, 2014, the applicant was requested to complete the required statement of loss. Once this is done and returned to the Passport Service, her application will be approved for passport issue.

Passport Applications

Questions (48)

Bernard Durkan

Question:

48. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Foreign Affairs and Trade if an extension of time may be given to facilitate provision of information in respect of application for passport in respect of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [25217/14]

View answer

Written answers

The Passports Act, 2008 provides, among other things, that only Irish citizens are entitled to be issued with Irish passports. Each application received by the Passport Service must, therefore, contain relevant evidence that clearly demonstrates that person’s entitlement to Irish citizenship before a passport can issue to him/her. The child in question was born in the State in 2010. His entitlement to Irish citizenship is, therefore, subject to the terms of section 6A of the Irish Nationality and Citizenship Act, 1956, as amended (the Act). This provides that a person, born in the State on or after 1 January 2005, where neither parent is an Irish or British citizen or otherwise entitled to reside in the State or Northern Ireland without restriction at the time of that person’s birth, may claim citizenship by birth in the State (and thereby establish eligibility for an Irish passport) only where a parent has been lawfully resident in the State for three years of the four years preceding that person’s birth. In line with guidelines provided by the Department of Justice, Equality and Defence, which is responsible for immigration and citizenship, the proofs of lawful residence of a non-EU parent, which are accepted and considered by this Department for the purposes of passport applications are immigration stamps in passports or the registration cards/books, which are given to persons registering with the Garda National Immigration Bureau (GNIB). In some cases, letters from GNIB which provide details of issued immigration stamps, are also accepted. These are official documents which can be objectively verified by the Department.

A passport application for this child was received by the Department on 11 April 2014. However, it could not be finalized for passport issue because the amount of his mother’s lawful residence, which was calculated from the submitted evidence, was insufficient to demonstrate his entitlement to Irish citizenship.

It should be noted that the evidence of the mother’s lawful residence, which was taken into account by the Department, was stamps in her passport, her registration card and a letter, dated 8 October, 2013, from GNIB. (The latter detailed the stamps which were issued to her.)

The Department wrote to the applicant’s mother on 2 May, 2014 to inform her of this problem and to give her notice of the proposed decision to refuse a passport to the applicant under the Passports Act, 2008 on the grounds that he is not an Irish citizen. This letter set a deadline of 30 May for the receipt of representations and/or information that may be relevant to the proposed decision. No reply has been received to this letter.

In terms of additional information/evidence that may be relevant to this case, the following should be noted:

(i) no evidence has been presented in the submitted application that shows that the applicant’s mother was an Irish citizen at the time of the applicant’s birth. If such evidence exists, it would prove that the applicant is an Irish citizen and that his entitlement is not subject to section 6A of the Act; and

(ii) in a recent ruling of the Supreme Court, letters from the Department of Justice, Equality and Defence, which sanctioned a parent’s residence in the State, could be accepted as evidence of lawful residence from the date of the letter. This was an important ruling in that a period of residence between the date of the letter and the date of a subsequent stamp, issued by GNIB, was reckonable for the purposes of section 6A of the Act.

If evidence in regard to the above exists, it should be submitted to the Department for consideration. This may help to finalise this application to passport issue.

I have asked the Passport Service to extend the deadline for receipt of any such information up to the end of June 2014.

NAMA Property Sales

Questions (49, 55)

Finian McGrath

Question:

49. Deputy Finian McGrath asked the Minister for Finance the position regarding a property that was sold by the National Asset Management Agency (details supplied); and if he will make a statement on the matter. [25023/14]

View answer

Finian McGrath

Question:

55. Deputy Finian McGrath asked the Minister for Finance the position regarding a property that was sold by the National Asset Management Agency (details supplied); and if he will make a statement on the matter. [25022/14]

View answer

Written answers

I propose to take Questions Nos. 49 and 55 together.

I am advised that the sale of this property is being managed by Keenan Corporate Finance (KCF) as the appointed Administrator.  The property was placed on the open market in March 2012 with the marketing process closing in late April 2012.  The highest bidder was Granard Motte Community Enterprise Ltd. (GMCE).  Following the failure of GMCE to complete the transaction within the agreed timeframe post consideration of all bids, KCF advised that it could not recommend its offer to NAMA due to the requisite funding not being in place.  NAMA requested that the Administrator extend the period of time afforded to GMCE to enable it to raise the funding necessary to complete the transaction following assurances from GMCE that it expected to be in a position to complete the purchase within a reasonable timeframe.  However, and notwithstanding repeated assurances from it, GMCE has to date, more than two years later, failed to complete the transaction. NAMA advises that the property in question secures a loan which is part of the Northern Ireland Project Eagle portfolio disposal transaction.  If the sale of that portfolio proceeds, the issue will be for the new owners of the portfolio to determine.

As the Deputy is aware, NAMA is not in a position to gift assets to potential purchasers as it is obliged to set the realised value of assets against the indebtedness of its debtors.

Tax Code

Questions (50)

Seán Fleming

Question:

50. Deputy Sean Fleming asked the Minister for Finance if an organisation (details supplied) was granted charity status by the Revenue Commissioners; and if he will make a statement on the matter. [24985/14]

View answer

Written answers

I am advised by Revenue that for reasons of taxpayer confidentiality it cannot comment on the tax affairs of individual bodies. However, Revenue has confirmed to me that a full list of bodies or trusts holding charitable tax exemption is available on its website at www.revenue.ie  and the Deputy will be in a position to see that the organisation in question is not on the list.

By way of background information, Revenue has also confirmed to me that to avail of a charitable tax exemption under Section 207 of the Taxes Consolidation Act 1997, a body or trust must be established for charitable purposes only and must apply all of its income to those purposes.

Finally, Revenue has assured me that it has procedures in place to ensure that charitable tax exemption is only granted to bodies or trusts that meet the necessary qualifying criteria. It also has procedures in place to carry out periodic reviews on the bodies or trusts that hold charitable tax exemption to ensure compliance with the terms under which it was granted. These reviews take into account all of the relevant issues in regard to the exemption, including any matters which may have been brought to Revenue's attention.

Budget Measures

Questions (51)

Thomas Pringle

Question:

51. Deputy Thomas Pringle asked the Minister for Finance the impact on the budget deficit if there was no reduction in expenditure or increases in taxation in budget 2015 and there were growth rates of 1.5% and 2.0% in 2015; and if he will make a statement on the matter. [24999/14]

View answer

Written answers

The fiscal forecast for 2015 contained in April's SPU is predicated on a consolidation package of €2.0bn which has been well flagged over recent years and is estimated to deliver a general government deficit of 2.9% of GDP.  The no-policy change scenario sought by the Deputy will, as is the norm, be published in advance of Budget 2015.

In terms of economic growth underpinning this forecast, real GDP is forecast to grow at 2.7% in 2015 and nominal GDP, which is the driver of taxes and the denominator used in the deficit / GDP ratio, is estimated to grow at 3.6%. These macroeconomic forecasts have been endorsed by the Irish Fiscal Advisory Council.

There is no simple answer with regard to the impact of different headline growth rates on the deficit as the exact impact would depend on the composition of growth. For example, growth driven by exports does not have as significant an impact on the public finances as domestically driven growth.  A rule of thumb estimate is that for every extra percentage point of GDP growth, the deficit improves by between ¼ and ½ percentage points depending on the composition of growth.

Finally, I would like to reiterate that there remains a lot of moving parts, and the most up to date economic and fiscal information will be used in deciding the adjustment package necessary to deliver on our EDP obligations closer to Budget time.

Universal Social Charge Application

Questions (52, 53, 54)

Thomas Pringle

Question:

52. Deputy Thomas Pringle asked the Minister for Finance the effect on taxation revenue of introducing a new 48% taxation rate on all income over €100,000 per annum; and if he will make a statement on the matter. [25000/14]

View answer

Thomas Pringle

Question:

53. Deputy Thomas Pringle asked the Minister for Finance the impact of reducing the universal social charge rate for self-employed persons to 7% who earn over €100,000 per annum; and if he will make a statement on the matter. [25002/14]

View answer

Thomas Pringle

Question:

54. Deputy Thomas Pringle asked the Minister for Finance the impact of increasing the lower contribution rate of universal social charge up to €15,000 and pro rata increases for subsequent rates; and if he will make a statement on the matter. [25005/14]

View answer

Written answers

I propose to take Questions Nos. 52 to 54, inclusive, together.

In relation to the introduction of a new 48% Income Tax rate on all income over €100,000, it is assumed that the new threshold would not alter the existing standard rate band structure applying to single and widowed persons, to single person child carers and married couples. On that basis, I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer, estimated by reference to 2014 incomes, of the introduction of such a rate, would be of the order of €380 million. However, given the current band structures, major issues would need to be resolved as to how, in practice, such a new rate could be integrated into the current system and how this would affect the relative position of different types of income earners.

In relation to reducing the Universal Social Charge (USC) from 10% to 7% for self-employed persons with income in excess of €100,000 per annum, I am advised by the Revenue Commissioners that the full year cost, estimated by reference to 2014 incomes, would be of the order of €123 million.

In relation to increasing the threshold for the application of the lower rate of USC from €10,036 to €15,000, with subsequent pro-rata increases, as suggested by the Deputy, I am informed by the Revenue Commissioners that the cost, estimated by reference to 2014 incomes, would be of the order of €652 million.

All estimates above are derived from the Revenue tax forecasting model using actual data for the year 2011, adjusted as necessary for income, employment and self-employment trends in the interim. Estimates are therefore provisional and may be revised.

Question No. 55 answered with Question No. 49.

Mortgage Arrears Rate

Questions (56)

Michael McGrath

Question:

56. Deputy Michael McGrath asked the Minister for Finance in relation to the residential mortgage arrears and repossession statistics published each quarter by the Central Bank of Ireland, if a mortgage arrears case which has had its arrears capitalised as part of an agreed restructuring arrangement and where no new arrears have since arisen, is no longer included as a mortgage in arrears. [25024/14]

View answer

Written answers

I am advised by the Central Bank of Ireland that if a mortgage in arrears has its full arrears balance capitalised (such that the arrears balance goes to zero) then this mortgage is no longer classified as in arrears in the Central Bank s Residential Mortgage Arrears and Repossessions Statistics . The mortgage will be counted in the restructured accounts category.

Excise Duties

Questions (57, 59)

Sandra McLellan

Question:

57. Deputy Sandra McLellan asked the Minister for Finance the yield to the Exchequer from an increase of 10 cent, 20 cent, 50 cent and 60 cent in the excise duty on 20 cigarettes, and a pro rata increase in excise on other tobacco products; and if he will make a statement on the matter. [25052/14]

View answer

Sandra McLellan

Question:

59. Deputy Sandra McLellan asked the Minister for Finance if he will provide the annual increases in the retail price of 20 cigarettes since 2001 to date in 2014 in tabular form; and if he will include the pre-budget retail price, the budget tax increase and the proportion of that due to specific tax, ad valorem tax and VAT, the post-budget price, the trade increase and the tax element of the trade increase broken into its constituent parts; and if he will make a statement on the matter. [25054/14]

View answer

Written answers

I propose to take Questions Nos. 57 and 59 together.

I am informed by the Revenue Commissioners that the potential yield from the Duty increases suggested by the Deputy, in a full year including VAT, are as set out in the following table. However, I am further advised by the Commissioners that these estimates are based on the assumption of no change in behaviour by smokers following increase in prices and this is unlikely to be the case.

Duty Increase

Potential Yield *

10c

€16m

20c

€31m

50c

€77m

60c

€92m

*Assuming no behavioural change by smokers.

I am informed by the Commissioners that economic research conducted by Revenue has shown that (further) cigarette price rises, particularly at the higher end of the range, are unlikely to increase Excise receipts from the sale of cigarettes (the largest source of Excise Duty on tobacco) and this is supported by experience in recent years. In economic terms, the demand for Irish duty paid cigarettes has moved to become much more elastic in nature, this implies an increase in price will lead to a proportionately larger decrease in consumption of Irish duty paid cigarettes resulting in an overall decrease in cigarette Excise receipts.

The likely reduction in consumption of Irish duty paid cigarettes (and fall in receipts) from higher duty on tobacco will arise from a combination of factors. Some people will reduce their smoking levels; others will simply substitute their consumption to non-Irish duty paid cigarettes. These can be either illicit or legally brought into the country. I am advised by the Revenue Commissioners that the extent of the illicit cigarette market in Ireland is estimated through annual surveys. These surveys are undertaken for Revenue and the National Tobacco Control Office of the Health Services Executive by Ipsos MRBI. The analysis of the results of the survey for 2013 are not yet fully finalised but preliminary analysis indicates that 11% of cigarettes consumed in Ireland in 2013 were illicit and a further 5% of cigarettes were non Irish duty paid which were legally brought into the country. The comparable figures for 2012 and 2011 were 13% and 14% respectively with the legally imported non Irish Duty paid cigarettes at 6% and 7%.

In relation to the second Question, the Revenue Commissioners advise that the annual increases in the retail price of the most popular price category (MPPC) of 20 filter tipped cigarettes since 2001 to end 2013 (the most recent period for which accurate information exists), together with the requested breakdown by tax and trade contents, are shown in the table. A full list of specific dates for trade content changes are not available to the Commissioners but the table shows the increase in each year.

TOBACCO (20 CIGARETTES)

Budget Changes and Trade Increases: Effect on Retail Price Expressed in Cents

Year

(date of Budget increases indicated)

MPPC

Budget

Increase

Trade

Increase

Excise

Specific

Excise

Ad Valorem

Total

Excise

VAT

Content

Total

Tax

Trade

Content

2001

477.4

-

-

207.4

90.2

297.6

79.6

377.2

100.2

-

-

-

+10.2

-

+1.9

+1.9

+1.7

+3.6

+6.5

-

487.6

-

-

207.4

92.1

299.5

81.3

380.8

106.8

05-Dec-01

-

+12.7

-

+8.2

+2.4

+10.6

+2.1

+12.7

-

-

500.3

-

-

216.4

93.7

310.1

83.4

393.5

106.8

2002

500.3

-

-

216.4

93.7

310.1

86.8

396.9

103.4

-

-

-

+20.7

-

+3.9

+3.9

+3.6

+7.5

+13.2

-

521.0

-

-

216.4

97.6

314.0

90.4

404.4

116.6

04-Dec-02

-

+50.0

-

+32.0

+9.3

+41.3

+8.7

+50.0

-

-

571.0

-

-

249.9

105.4

355.3

99.1

454.4

116.6

2003

-

-

+16.0

-

+3.0

+3.0

+2.8

+5.7

+10.3

-

587.0

-

-

249.9

108.4

358.2

101.9

460.1

126.9

03-Dec-03

-

+25.0

-

+16.0

+4.6

+20.7

+4.3

+25.0

-

-

612.0

-

-

266.8

112.1

378.9

106.2

485.1

126.9

2004

-

-

+13.0

-

+2.4

+2.4

+2.3

+4.6

+8.4

-

625.0

-

-

266.8

114.5

381.3

108.5

489.8

135.2

2005

-

-

+10.0

-

+1.8

+1.8

+1.7

+3.6

+6.4

07-Dec-05

635.0

-

-

266.8

116.3

383.1

110.2

493.3

141.7

2006

-

-

+20.0

-

+3.7

+3.7

+3.5

+7.1

+12.9

-

655.0

-

-

266.8

120.0

386.8

113.7

500.5

154.5

06-Dec-06

-

+50.0

-

+32.0

+9.3

+41.3

+8.7

+50.0

-

2006

705.0

-

-

302.7

125.3

428.1

122.4

550.4

154.6

2007

-

-

+10.0

-

+1.8

+1.8

+1.7

+3.5

+6.5

-

715.0

-

-

302.7

127.1

429.9

124.1

554.0

161.0

05-Dec-07

-

+30.0

-

+19.2

+5.6

+24.8

+5.2

+30.0

-

745.0

-

-

321.1

133.5

454.6

129.3

583.9

161.1

2008

-

-

+10.0

-

+1.8

+1.8

+1.7

+3.5

+6.5

-

755.0

-

-

321.1

135.3

456.4

131.0

587.5

167.5

14-Oct-08

-

+50.0

-

+32.0

+9.3

+41.3

+8.7

+50.0

-

805.0

-

-

350.6

147.2

497.8

139.7

637.5

167.5

01-Dec-08

-

+2.7

-

 -

 -

+2.7

+2.7

-

-

807.7

-

-

350.6

147.6

498.2

142.9

641.2

166.5

-

-

-

+2.3

-

+0.4

+0.4

+0.4

+0.8

+1.5

-

810.0

-

-

350.6

148.1

498.7

143.3

642.0

168.0

07-Apr-09

-

+25.0

-

+15.9

+4.6

+20.6

+4.4

+25.0

-

-

835.0

-

-

366.8

152.4

519.2

147.8

667.0

168.0

2009

-

-

+10.0

-

+1.8

+1.8

+1.8

+3.6

+6.4

-

845.0

-

-

366.8

154.2

521.1

149.5

670.6

174.4

01-Jan-10

-

-3.5

-

 -

-

-3.5

-3.5

-

-

841.5

-

-

366.8

153.6

520.4

146.0

666.5

175.1

2010

-

-

+13.5

-

+2.5

+2.5

+2.3

+4.8

+8.7

-

855.0

-

-

366.8

156.0

522.9

148.4

671.3

183.7

2011

-

-

+10.0

-

+1.8

+1.8

+1.7

+3.6

+6.4

-

865.0

-

-

366.8

157.9

524.7

150.1

674.8

190.2

06-Dec-11

-

+25.0

-

+16.2

+4.5

+20.7

+4.3

+25.0

-

-

890.0

-

-

384.9

160.5

545.3

154.5

699.8

190.2

01-Jan-12

+19.3

+0.7

+3.6

+3.7

+15.7

+19.3

+0.7

-

910.0

384.9

164.1

549.0

170.2

719.1

190.9

01-May-12

910.0

-

-

466.2

82.3

548.5

170.2

718.6

191.4

-

-

-

+10.0

-

+0.9

+0.9

+1.9

+2.8

+7.2

-

920.0

-

-

466.2

83.2

549.4

172.0

721.4

198.6

06-Dec-12

-

+10.0

-

+7.2

+0.9

+8.1

+1.9

+10.0

-

-

930.0

-

-

475.4

82.1

557.5

173.9

731.4

198.6

2013

-

-

+10.0

-

+0.9

+0.9

+1.9

+2.8

+7.2

-

940.0

-

-

475.4

83.0

558.4

175.8

734.2

205.8

15-Oct-13

-

+10.0

-

+7.3

+0.9

+8.1

+1.9

+10.0

-

-

950.0

-

-

483.7

82.8

566.5

177.6

744.1

205.9

Notes:

VAT Rate reduced to 20% on 1-1-01

VAT Rate increased to 21.5% on 1-12-08.

VAT Rate reduced to 21.0% on 1-1-10.

VAT rate increased to 23% on 1-1-12

Excise Duties

Questions (58)

Sandra McLellan

Question:

58. Deputy Sandra McLellan asked the Minister for Finance the difference in the proportion of excise tax applied to a pack of 20 cigarettes compared to hand-rolled tobacco; and if he will make a statement on the matter. [25053/14]

View answer

Written answers

The current rate of excise or tobacco products tax on cigarettes is €241.83 per 1,000 cigarettes, together with an amount equal to 8.72% of the retail price, or €275.62 per 1,000 cigarettes, whichever is the greater.  The rate of tobacco products tax on fine cut tobacco used for hand-rolled cigarettes is €252.222 per kilogram. 

I am advised by the Revenue Commissioners that a survey conducted by them in April 2014 found that the tobacco products tax on a pack of 20 cigarettes in the most popular price category represented 59.7% of the price, while that on a 25g pack of fine cut tobacco for hand-rolling represented 60.4% of the price.  When VAT is included, the total tax as a proportion of the price amounted to 78.3% in the case of cigarettes and 79% in that of fine cut tobacco. 

Question No. 59 answered with Question No. 57.

IBRC Liquidation

Questions (60)

Michael McGrath

Question:

60. Deputy Michael McGrath asked the Minister for Finance the position in relation to unsecured creditors of Irish Bank Resolution Corporation, if the special liquidators are currently in communication with the unsecured creditors; if he expects these creditors to be paid in full; and if he will make a statement on the matter. [25055/14]

View answer

Written answers

I have been advised by the Special Liquidators that all creditors detailed in the books and records of Irish Bank Resolution Corporation (in Special liquidation) as at 7 February 2013 were written to shortly after the appointment of the Special Liquidators and asked to submit their claims. Those creditors determined to be unsecured were notified of same. All unsecured creditor claims have been kept on file until it is confirmed whether dividends will be payable to unsecured creditors in whole or in part. It is not yet known if dividends will be paid to unsecured creditors.

IBRC Liquidation

Questions (61)

Michael McGrath

Question:

61. Deputy Michael McGrath asked the Minister for Finance the total value of deposits at Irish Bank Resolution Corporation that were not covered by the deposit guarantee scheme or the eligible liabilities guarantee; the current status of these deposits; if he expects these to be re-paid in full; and if he will make a statement on the matter. [25056/14]

View answer

Written answers

I have been advised by the Special Liquidators that the total value of deposits not covered by the DGS or ELG schemes is €20,765,407. These deposits are unsecured creditors of the company and the Special Liquidators have confirmed that their details are being retained on file.  The extent of any potential distribution to them will depend on whether there will be distributable assets to meet the claim of unsecured creditors in whole or in part.

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